Van Leeuwen Group to offload nine dairy farms at South Canterbury in New Zealand which could make $99 million

A significant dairy farm sale in underway in New Zealand. And the farms could make their noted owner $99 million.

A SIGNIFICANT dairy-farm sale is underway in New Zealand.

The Van Leeuwen Group is selling nine of its New Zealand dairy farms to focus on barn operations.

The agribusiness enterprise’s nine farms, located in the South Canterbury region, comprise six pastoral dairy farms and three dairy support blocks equalling 3298ha and include extensive infrastructure, irrigation shares and a supply contract to Oceania Dairy.

Aad and Wilma van Leeuwen said now was the right time sell.

“We have grown our business substantially over the years, and are now looking to pass this legacy on to the next generation,” Mr van Leeuwen said

“Along with a capital restructure, we recently finalised a new vision for the business which is primarily focused on optimising and growing our robotic barn farming operations.

“Our aim is to be a market leader in farming systems that are sustainable with new environmental regulations, ensuring the business is well positioned to capitalise on future dairy profitability due to growing scarcity of supply.”

Buyers will have the option to:

PURCHASE the entire property portfolio, including land, buildings, associated lease land, irrigation shares and water supply, stock, items of plant and equipment and supply contract to Oceania Dairy;

PURCHASE the entire property portfolio with external operational management via a long-term leaseback;

PURCHASE one or more individual properties and their associated leases.

A price for the farms is yet to be revealed but according to REINZ’s latest Rural Statistics Report, NZ dairy farms made a median price of NZ$30,299 per ha for the first quarter of the year. That would value the Van Leeuwen farms at NZ$99 million.

Colliers International national director of rural and agribusiness, Ruth Hodge, said New Zealand’s dairy industry had shown its resilience with less impact than other sectors at present.

“Historically, during times of crisis, food production remains absolutely core and investment flows to these types of assets,” Ms Hodge said.

“The long-term outlook for dairy proteins is still very strong. New Zealand’s production is not increasing, meaning supply in the future will remain tight and prices firm”.

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